London's financial services: job market reaches yearly low


While more professionals are searching for work, job opportunities in financial services are continuing to decline

There were just over 4,000 job vacancies in London’s financial services in August, the lowest level in 2011, according to the Morgan McKinley London Employment Monitor – August 2011.

Vacancies fell to 4,095 in August, down from 4,977 in the previous month.

The number of professionals entering the hiring market rose to 10,291, from 8,770 in July.

Despite the fall in job opportunities, the average time to fill roles in August rose to 58 days, one more than in July.

Vacancies fell by 26 per cent from August 2010 and the number of professionals looking for new roles was down 5 per cent.

“Perfect storm”

Commenting on the findings, chief executive at Morgan McKinley Financial Services, Andrew Evans, said: “Last month we identified the ‘perfect storm’ of factors influencing the relatively low number of available jobs in the financial services hiring market. 

“August 2011 has seen a continuation of these negative economic conditions. A deterioration in the volume of hiring was therefore expected. 

“In fact, the 18 per cent month-on-month drop represents the lowest level of job availability this year. It is also further impacted by this being the peak period of the summer holiday months – a time when recruitment activity traditionally slows down each year.

Commenting on the increase of one day in the time taken to fill new roles, Evans said: “This shows that where there is an appetite to hire, the process is moving at an adequate pace. 

“Although overall job opportunities are down significantly this month, financial institutions are still hiring cautiously in key areas. However these tend to be replacement hires rather than investment hires.”

The London Employment Monitor also recorded a 3 per cent increase in the average salary for new hires in financial services in August 2011 compared with the previous month. 

The average salary for new roles was £52,239, marking financial services institutions continuing to keep salaries for new employees “relatively stable”, says Morgan McKinley.